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Article: Yuan step from the edge; China's exchange rate.
- Article from:
- The Economist (US)
- Article date:
- April 1, 2006
CopyrightCOPYRIGHT 2006 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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America's obsession with China's exchange rate is largely wrong-headed
ONLY a brave man or a fool predicts exchange rates. Regrettably, predicting exchange-rate policy is a different matter. America looks determined to press China to raise the yuan's value against the dollar ahead of President Hu Jintao's visit to Washington, DC, on April 20th. Such political games are understandable, given the mid-term elections coming up in November. But they are also dangerous. China's exchange rate is not to blame for America's huge current-account deficit. Moreover, by slapping tariffs on Chinese goods, as congressional bills have threatened if the yuan is not adequately ...